Securities and markets regulatory news, 9 July 2021

Contents

• Download the full regulatory news bulletin
• Listing regime: FCA Primary Markets Effectiveness Review
• EMIR: European Commission Implementing Decisions on equivalence for third country derivatives regimes

Listing regime: FCA Primary Markets Effectiveness Review

The Financial Conduct Authority (FCA) has published a consultation paper, CP21/21, seeking views on how primary markets can work more effectively for both companies and investors. The consultation forms part of the FCA's response to the UK Listing Review, chaired by Lord Jonathan Hill, and the Kalifa Review of UK FinTech, both of which made recommendations relating to the listing regime.

The paper is divided into two parts. The first part is a discussion on the purpose and value of the listing regime which is intended to inform the FCA how the listing regime may be made more efficient and accessible, while keeping high standards. The second part consults on the following targeted changes to the existing listing regime to remove barriers to listing and to improve the accessibility of the FCA handbook:

• allowing dual class share structures within the premium listing segment in certain limited circumstances;
• as part of the eligibility criteria set out in the Listing Rules, reducing the amount of shares an issuer is required to have in public hands (i.e. free float) from 25% to 10%;
• increasing the minimum market capitalisation threshold for both the premium and standard listing segments for shares in companies other than funds from £700,000 to £50 million; and
• making several minor changes to the Listing Rules, Disclosure Guidance and Transparency Rules and the Prospectus Regulation Rules to ensure they are simplified where appropriate and reflect current business practices.

The FCA explains that it also considered making changes to the premium listing segment eligibility criteria in the Listing Rules, for the track-record requirements. Although it has concluded that it would not be appropriate to propose specific rule changes at this time, the FCA clarifies its expectations in this paper and seek views on whether changes are needed.

The consultation closes on 14 September 2021 and the FCA hopes to make relevant rules by late 2021. It will provide feedback on the discussion subjects and issue a potential further consultation on the wider listing regime changes in due course, if appropriate.

EMIR: European Commission Implementing Decisions on equivalence for third country derivatives regimes

European Commission Implementing Decisions on the equivalence of the regulatory regimes of the following third countries under Article 11 of the European Market Infrastructure Regulation (EMIR) have been published in the Official Journal of the European Union:

• Brazil (Commission Implementing Decision (EU) 2021/1103);
• Canada (Commission Implementing Decision (EU) 2021/1104);
• Singapore (Commission Implementing Decision (EU) 2021/1105);
• Australia (Commission Implementing Decision (EU) 2021/1106);
• Hong Kong (Commission Implementing Decision (EU) 2021/1107); and
• United States (Commission Implementing Decision (EU) 2021/1108).

The Decisions enter into force on 26 July 2021.

Download the full regulatory news bulletin 

Authored by Yvonne Clapham.